Debt-to-Equity Ratio

The debt-to-equity ratio measures how much a company relies on borrowed money compared to shareholders’ equity to finance its operations; a ratio of 1.56x means XEL has $1.56 of debt for every $1 of equity.

This is well above the sector median of 0.73x, placing XEL in the 80th percentile among its peers—meaning it carries more debt relative to equity than 80% of comparable companies. Trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and no historical values beyond the current 1.56x are provided. Because the level is elevated relative to peers and no trend can be assessed, the risk is that XEL’s higher leverage could pressure earnings if interest costs rise, though an improving trend would have offered a clearer opportunity signal. This metric, showing above-average debt usage with no directional information, supports the overall NEUTRAL verdict by highlighting a potential risk without confirming a deterioration or improvement.

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